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Ag production costs and demand pressures are mounting

A leading ag economist says production and demand pressures are mounting for ag producers.

The University of Missouri’s Scott Brown said disposable consumer income growth will be nearly flat this year while spending has increased around 10 percent.

“How are we doing that? It’s credit cards, it’s taking on debt; those things can’t continue forever,” he said. “And if U.S. consumers have less money in their pockets, do they consume less food, do they consume less ag products?”

Meanwhile, he said skyrocketing producer costs are making production less stable.

Ag production costs and demand pressures are mounting

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